The JSE closed a little lower on Friday, tracking weak global markets, after the White House threatened to impose tariffs on Mexico in response to illegal migration from that country.
“An actual global trade war would likely drive SA’s economy into a recession more severe than the technical ones experienced at times in the current decade,” said Investec economist Annabel Bishop. “The global economy would also not likely recover quickly as increased protectionism hinders economic growth. A resultant weakening in SA’s growth would be likely, which would aid a credit-rating downgrade from Moody’s.”Asian markets were lower on Friday: the Shanghai Composite fell 0.
Tongaat Hulett slumped 7.73% to R16.70 after it said it needed to restate its financial statements for the year to end-March 2018 after identifying “past practices, which are of significant concern”, which the company said resulted in financial statements not reflecting its underlying business performance.